Maxton Builders, Inc. v. Lo Galbo
Court of Appeals of New York
502 N.E.2d 184 (1986)
Maxton Builders (plaintiff) contracted to sell a new home to the Lo Galbos (defendants) for $210,000, with a clause letting the Lo Galbos cancel by written notice within three days of tendering their $21,000 down payment if property taxes exceeded $3,500. After learning taxes were much higher, the Lo Galbos' attorney sent a cancellation letter, but Maxton's attorney did not receive it within the required three days. The Lo Galbos then stopped payment on their down-payment check, and Maxton sued for breach. The trial court and appellate division both ruled for Maxton.
Whether, in New York, written notice received after a contractually specified time period is ineffective when the contract expressly requires notice within that period.